Pulling a Romney, Instagram denies what it said but stands behind what it said, whatever it was but is asking for time to clarify what it really meant.
From a 12/19/2012 BBC website article:
Instagram's policy to users:
"You hereby grant to Instagram a non-exclusive, fully paid and royalty-free, transferable, sub-licensable, worldwide license to use the content that you post on or through the service..." and "...a business or other entity may pay us to display your username, likeness, photos, and/or actions you take, in connection with paid or sponsored content or promotions, without any compensation to you."
translation: kill me.
just in case anyone has forgot, Facebook bought Instagram for $1billion in April, 2012. Is the language now clear?